UK industrial output grows at fastest rate so far in 2017, finds ONS

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UK industrial output grew at its fastest rate seen this year in September according to the Office for National Statistics, in data which is likely to make the Bank of England feel more comfortable about its decision to raise interest rates for the first time in a decade last week.

The ONS reported that industrial production rose by 0.7 per cent in the month, more than double the 0.3 per cent financial analysts had expected.

Within that, manufacturing rose by 0.7 per cent.

The ONS also reported that the UK’s trade deficit in goods was £11.25bn in the month, better than the £12.8bn analysts had penciled in.

The data pushed up the pound to $1.3167.

Last week the Bank of England’s Monetary Policy Committee raised interest rates from 0.25 per cent to 0.5 per cent, the first increase in the cost of borrowing since July 2007, despite the fact that the economy has slowed considerably this year and considerable trepidation from many firms over Brexit.

Despite the positive news on industrial production and trade, a separate release from the ONS suggested the construction sector had a torrid September, with output contracting 1.6 per cent.

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